The final pooling order was issued in June. Anyone know if there are any plans to drill in Section 16 in the near future?
Buddy: The Order was actually signed back in March. No intents to drill in this section or the offset sections. Becoming pretty quiet in the Oklahoma oil patch.
Thanks, Todd. I was kind of afraid of that. The lease has another year. I guess sometimes things just don’t work out.
Pooling order says they have 365 days. Well was planned for 16&21. I do not see a permit in either section or adjacent ones that includes those two sections. Date of pooling order was March 21, 2019.
However, there are 2019 permits in sections 9(2), 18 (4), 24 (1), 27 (1).
Thanks for your reply. There’s always a chance, I guess!
Since you seem to know a lot about what’s happening in this area, I’d like to ask another question that you might be able to answer. The 3 year lease for these minerals was signed in July of 2017. Since there has been on action and unlikely any in the near future, at the end of that term – since there was no option to extend, will it just be available for lease offers again, or do they have to send something in writing to indicate the lease is no longer active?
If there was no drilling and no option to extend, the lease expires by its own terms.
However, Native has filed an extension of the Pooling order 693221 for that section. A well was planned for 16&21. I am guessing that they will not drill at this time given current market conditions. The spacing and well location exception have been approved, but the horizontal wells have not.
If you really want a release of lease, there is a form, but not usually needed.
Sounds like it might be best to just leave this alone and wait for things to improve. I really appreciate your quick reply. No reason for me to want to get out of the lease if they are still serious.
Do you see any signs that there might be any future movement in this section?
There are no current filings on section 16, but that doesn’t mean forever. Looks like all the production in the section ceased, so unless there were shut in payments, the leases are expired.
Marathon had a horizontal in 15 which was good and it still online. Citizen has two horizontal wells in 9&4 to the north. Cimarex has a horizontal in 17&20. Potential in the area.
When the economics work, someone may come back in.
Thank you so much for this information.
Looks like a well is being drilled right. I think I saw permits for a leg that goes into section 16 and a separate leg into section 21. What’s a realistic expectation for BOPD/MCFGPD?
Citizen Energy III has new cases for this area. Two wells to go into 16 & 21. The increased density cae 2022-002066T lists the expected recoveries. Take them with a grain of salt. I hesitate to give expected production as one needs to know how to interpret the data. Beginning test data will rapidly drop off with normal decline. The wells should be similar to the wells around them with similar drilling and completion methods.